About 24% of US households live in a mortgage payment that increases the cost
‘The big money panel shows that Brian Moynihan’s claim that Americans continue to spend despite rising economic optimism.
About a quarter of all American homes Livelihood from Paycheck And the number rose last year, although the rate of growth has slowed, according to a new report.
This page Bank of America Institute The report found that almost 24% of households will be classified as living payments to pay until the year 2025, an increase of 0.3 percent from 2024 – although the growth rate is almost three times less.
It defines living pay-to-pay as families using more than 95 percent of their income for needs such as housing needs, food, gas, utilities, internet plans, social care and social care and social care and child care. That leaves them with little or no cash left over or “good-to-have” purchases that make sense.
“Although the number of single-family households paying a premium increased this year, the pace of growth has slowed significantly,” Bank of America Institute Economist Chy told Fox Business. “It is because it seems that there is a lot of financial pressure that has been increasing and is concentrated in these lower councils as these families struggle to keep up with the rising costs.”
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About one in four Americans live in the payroll sector, although the rate of growth has slowed according to the Bank of America Institute. (Stock / istock)
Inflation grew rapidly There are middle and low income rural income tax as of January 2025, Bank of America Institute found.
That trend has led to the threat of income families who live to pay 29% this year, from 28.6% in the year of income, there was a small increase in living payments to pay.
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“For middle and lower income families, I think inflation is the main driver. Especially this year, we’ve seen the gap between income and expenses continue to widen for lower income families,” explained Wadford.
“In October we saw an increase in wages of 1%, and the latest inflation data has Cost of Living An increase of 3%, “he added.” Put another way, if your bills increase by $300, but you make $100 more, how should you proceed with that? And I think the short answer is that some families really struggle. “
Wage growth for low-wage workers has slowed relative to their high-wage counterparts in recent years. (Yuki Iwamura/Bloomberg via Getty Images/Getty Images)
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About 19% of high-income families have regular mortgage payments, Bank of America said A passionate lifestyle causing debts to rise.
“If you talk about High income families That living from Paycheck to Paycheck, can be what is learned about the way of life maybe the main driver, “said Wadford.” You’ve bought a house, bought a few cars and before you know it you’re in debt. “
Inflation has continued to erode the budgets of American families. (Justin Sullivan/Getty Images/Getty Images)
The report also found out income growth For low-income earners it has been compared to higher-income counterparts since early 2025, after rising rapidly in 2021-22, before cooling off in 2023-24.
“This fixed K economy is very dependent on wage growth,” explained Wadford. “As long as you continue to see a gap between high-income growth and low income growth, you’re going to continue to see this.”
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“The gap between high wage growth and low income is the highest we’ve seen since 2016,” he added. “If we continue to see the labor market treat these two groups differently and the overall cooling, I think this is the type of situation for the foreseeable future.”
